Page 13 - Banking Finance February 2025

MUTUAL FUND

Inflows into Equity Mutual

Funds Jump to Rs. 41,156
Crore in December
Inflows into equity mutual funds in-
creased by 14.5% on a month-on-
month basis, reaching Rs. 41,155.91
crore in December compared to Rs. Ò»©­
35,943.49 crore in November, as per
the latest data from the Association of
Mutual Funds in India (AMFI).
In December, inflows via systematic
investment plans (SIPs) stood at Rs.
26,459 crore, an increase from Rs.
25,320 crore in November 2024. 34 Mutual Fund NFOs Mobilize Rs. 13,852 Crore in
Net assets under management (AUM) December
experienced a slight decline of 1.69%,
In December, 34 mutual fund new fund offers (NFOs) collectively mobilized
falling to Rs. 66,93,032.12 crore in
Rs. 13,852 crore, with 33 being open-ended funds and one close-ended fund.
December from Rs. 68,08,101.16 crore
in the previous month. Among the open-ended funds, 12 were sectoral/thematic funds, and 12 were
index funds. The remaining included two schemes each for long-duration,
46 Million Demat Accounts multi-asset allocation, and ETFs. Additionally, one multi-cap, arbitrage, and
children's fund was launched.
Added in 2024, Total
The 12 sectoral and thematic funds contributed Rs. 11,337 crore to the total
Reaches 185 Million NFO mobilization.
The number of dematerialized (demat) New funds launched in December included Aditya Birla Sun Life Conglomer-
accounts in 2024 grew by 46 million, ate Fund, Axis Momentum Fund, Bajaj Finserv Healthcare Fund, Bank of
averaging 3.8 million new accounts per India Consumption Fund, DSP Business Cycle Fund, ICICI Prudential Equity
month.
Minimum Variance Fund, Kotak Transportation & Logistics Fund, PGIM In-
This represents a 33% increase from dia Healthcare Fund, Quantum Ethical Fund, SBI Quant Fund, Shriram Multi
the previous year, taking the total to Sector Rotation Fund, and Union Active Momentum Fund.
185.3 million accounts.
Demat accounts have experienced sig- lence due to foreign portfolio investor This trend reflects a growing prefer-
nificant growth since the COVID-19 (FPI) selling and disappointing earnings ence for smaller amounts raised via
pandemic, driven by simplified account caused a slowdown in new account fresh shares, used for business expan-
opening processes, widespread additions over October and November. sion or debt repayment, while existing
smartphone adoption, and favorable shareholders claim a larger share of
market returns. IPO proceeds.
Investors Earn Rs. 1 Lakh
In the past five years, the number of For instance, Hyundai Motor India's
demat accounts has more than qua- Crore in 2024 IPO Frenzy IPO, which raised Rs. 27,860 crore,
drupled, rising from 39.3 million in Investors and promoters earned close comprised entirely of shares sold by
2019. to Rs. 1 lakh crore from initial public the parent company.
During the first nine months of 2024, offerings (IPOs) in 2024, marking the Data from Prime Database shows that
36 million new accounts were added, highest level in at least a decade. Fresh Rs. 95,210 crore was raised via offers
boosted by secondary market gains and share issuances accounted for Rs. for sale (OFS) in 2024, surpassing the
record IPOs. However, market turbu- 64,300 crore of the total proceeds. Rs. 75,400 crore raised in 2021.

12 | 2025 | FEBRUARY | BANKING FINANCE